Two homes, Owner Finance but is it really a deal?

[Daniel Rutledge]

Seeking advice on a possible Owner Finance deal from another investor. Both of these homes are on Zillow with a bit of information and from what I can see there are pros and cons with the deal. Pro: 8k as a down payment is attractive and having a deal outside of the credit system is also attractive. Also, if the deal is cash flow positive right off that is a plus. Cons: Total cost of the two homes is likely more than the actual value. I also do not know what the cost of repairs are on the second home. I do not know the quality of the tenants. The area is a mill hill on the "bad" side of town. There will be zero to little appreciation in these properties. Below is the information from the seller and I would love some input from all sides. Thanks

2 Homes for sale with owner financing available.
$100,000 owner financed
8% down - $8,000
Payment - $875 a month includes taxes and insurance
Net Monthly Income $475
Net Annual Income $5700
Cap Rate 5.7%
Cash on Cash Return 71.25%

410 Hudgens St. Anderson, SC
3 bed 1 bath, recently renovated, rent $800 a month.
Taxes $1,395
Lease is up Feb. 2019

703 Posey St. Anderson, SC
3 bed 2 bath, needs a little work but is rented currently for $550 a month.
Rent should be $700
Taxes $579
Lease is month to month, tenant has paid on time for 3 years.